Dental Sector

FY14 Snapshot

Continued expansion and growth of both dental networks

Continued investment into building infrastructure of Dental Partners

Focus on achieving effeciencies and benefits of scale

In FY14, Dental generated $188.5 million in gross revenues (69%of Abano’s total gross revenues). Positive progress was made by both businesses, with the foreign exchange impact masking the improvements made by the Australian dental business.

The main focus during the year was on strengthening the infrastructure of Dental Partners to ensure we have a strong foundation and appropriate resource in place to establish branding and continue growth. This included investment into the head officemanagement and support teams. We also continued to invest into our people, through the development of a dynamic internal culture.

Clinical excellence remains an essential element in our success and our clinical advisory boards, whose members are highly experienced dentists, worked to implement best practice across each group and develop the skills of our dental clinicians.

Network growth also continued with the acquisition of 19 practices providing $28 million in additional annualised gross revenue.

FY15 Outlook

In FY15, we will continue with our acquisition and organic growth strategies. Aside from acquisition, our main investments will be into developing a marketing and branding strategy for our Australian business and driving same store improvements for both our dental businesses. We will also continue to focus on driving material and laboratory cost efficiencies, with the recent appointment of a group procurement manager.

While the trans-Tasman economy, particularly in Australia, remains soft, there are some signs of improvement and we expect same store, year on year sales to increase in line with this.